Business Valuation Results
- Intangible Assets - for a franchise food company with over 30 restaurants. The final outcome demonstrated that the majority of the Intangible Assets had a negative value allowing the Company to renegotiate the leases saving over $1 million in 90 days.
- Product Liability - A Fortune 1000 Company hired Lakelet to determine the true economic loss caused by its product's malfunction. Our findings were agreed upon by all parties and saved the client over seven digits in liability.
- Shareholder Dispute - A minority shareholder was being diluted as a result of questionable value assigned to the acquisitions / transactions. The courts upheld our findings and rewarded the minority shareholder accordingly.
- Product Liability - damage done by a major utility provider to a sports facility. Representing the utility company - it was proven that the stated economic loss by the sports facility was materially overstated. Lakelet was able to negotiate our findings and eliminate the original damages cited.
- Intellectual Property - associated with a medical device that was not commercialized. Utilizing the Monte Carlo valuation methodology, Lakelet was able to present a set of values to potential investors, manufacturers and the inventor; thus allowing each party to negotiate possible royalty / distribution transactions.
- Software - co-founders of a very successful software company forced one of the co-founders to leave "without cause". Both parties agreed to an independent business valuation to mitigate the costs and business interruption of a "business divorce". After Lakelet's valuation and presentation - the parties agreed to a 50% increase over the initial offer.
Improvements in Working Capital
- Improved working capital by 23% in 28 days.
- Reduced inventory by 28% in 60 days using the A, B and C inventory analysis, generating an immediate cash infusion and savings of $7.7 million.
- Increased EBITDA over 31% and reduced debt by 29% within one year.
- Led the preparation of strategy, manufacturing, marketing, and distribution of an alternative fuel-efficient heating solution throughout the United States and Canada. Within a year, product offerings were extremely profitable and GP% was greater than 40%.
- Increased gross margins by two percentage points within 30 days through mapping out and implementing accountability / responsibilities on the plant floor.
- Increased labor efficiencies 13% by optimizing production facility layout.
- Improved the A/R and A/P accounting productivity 147% through triaging workflow and training.
Tangible Benefits from Technology
- Generated savings of $7.4 million per annum by reducing administrative and IT costs per employee by 40%.
- Saved an additional $4.8 million in five years through maximized productivity and connectivity.
- Immediate savings of $2 million through renegotiating outsourcing contracts.
- Strategic sourcing generated a net savings of 18% ($2.6 million) of administrative and IT expenditures.
- Implemented current technologies, such as the “thin client” and intranet solutions. As a result, open support issues decreased by 87%.
Business / Process Optimization
- Prepared economic model and implemented Economic Value Added (Stern Steward's EVA Methodology) in 45 days. Generated +4 day improvement of cash on hand in 60 days.
- Saved a recognized $168,000 (at a cost of $48,000) in 120 days by reengineering customer service.
- Conducted internal productivity analysis of 18 facilities to develop “best practices.”
- Reduced time for financial consolidations – with no costs, resulting in a 50% improvement in 90 days.
Sales / Revenue / Customer Service Enhancements
- Introduced new product in a competitive software market for service organizations. In 12 months, +500 professional firms were using the solution.
- Increased gross margins by four percentage points within three months by strategically adjusting prices. No customers were jeopardized or lost during this exercise.
- Stabilized and improved a $57 million region. For the last three quarters of the fiscal year, this region outperformed all other regions by +8%.
- Increased automated orders by $375 million.
- Conducted a “post mortem” analysis on all returns and defects, reducing issues by an average of 23% per quarter.
- Utilizing the “Balanced Scorecard,” designed, implemented, and monitored a sales performance matrix with weekly feedback to a sales force of 32.
- Tripled the number of customers within 18 months from a CRM / client service strategy.
- Implemented “state-of-the-art” bar coding and automation in facilities to optimize productivity and reduce inventory requirements.
- Re-engineered the warehouse and transportation facilities. Implemented a standard process and solution for these logistics centers, resulting in an immediate $1.4 million annual savings.
Merger & Acquisition Savings
- Generated a savings of $38 million by successfully consolidating IT teams, processes, infrastructure, and systems.
- Involved in nine successful M&A engagements, including seeking the target company, valuations, due diligence, projections, and strategy plans.